Landlords Worry as Severe Rent Arrears Increase Again

10 October 2012 Categories: News

Landlords Worry as Severe Rent Arrears Increase Again

The latest statistics from chartered surveyors, Templeton LPA, show that the number of tenants falling into severe rent arrears, defined as two or more months behind with payments, has risen again and now stands at over 99,000. This constitutes the highest number recorded since 2008 and a 1.6% increase from the second quarter of this year. Even so, the amount of rent paid late or remaining unpaid from August dropped, with just 9% of payments being late or non-paid.

Landlords are starting to worry according to the statistics though, and the possibility of higher rental yields is doing little to outweigh the worry of severe rent arrears. Paul Jardine, director and receiver at Templeton LPA commented, “Rising rents have kept the pressure on tenants’ finances, and while the majority of tenants have shown a slight improvement in their ability to cope with the bigger rent cheques, the minority of renters who are months behind with rental payments is still expanding.”

He then went on to say, “The labour market has held up well recently, and if it strengthens further, it may well keep a lid on the number of tenants unable to pay the rent in the short-term.”